Arrow Unveils IoT Lab, Joins Intel for Edge-Computing Effort

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Arrow Electronics, Inc.ARW recently joined forces with Colorado Smart Cities Alliance to unveil Colorado Open Lab for Internet of Things (IoT) engineering.

The company also announced that it is teaming up with Intel INTC to launch Ambient Science, an IEEE global edge-computing standard, which is going to be showcased at Colorado Open Lab. The lab will serve as the proving ground for the new infrastructure.

Colorado Open Lab is Arrow's latest addition to the string of open labs that it is launching globally. The company's first open lab was in Hong Kong, which successfully brought in significant collaborations in consumer as well as industrial IoT.

The lab will showcase customer development activities and collaborate for innovations to fast track development of OEM IoT devices and artificial intelligence (AI)-enhanced applications. Reportedly, showcases include smart street lighting, smart parking, smart buildings, environment and resource conservation, energy resilience, infrastructure and asset management, and intelligent transportation, among others.

Colorado Open Lab will showcase and test the Ambient Science edge-compute infrastructure, which serves many applications in smart cities, smart buildings and industrial IoT. Edge computing is a way of optimizing cloud computing systems.

How Arrow is Poised to Benefit

Per Frost and Sullivan, the Smart Cities market is estimated at $2 trillion by 2025. Moreover, per Markets and Markets, the Edge Compute market is estimated to be worth $6.72 billion by 2022.

Fast growth in IoT, big data, AI and blockchain are major trends that are influencing IT spending, which bodes well for Arrow, given the nature of its offerings.

Per Gartner, this spending will reach $3.85 trillion in 2019, representing year-over-year growth of 2.8% from the current-year level. All these encourage us about the company's near-term prospects.

We note that Arrow has secured significant market share (12.52% in 2018 per through its broad portfolio of products and services, and continued efforts to maximize consumer satisfaction.

The company's diverse product range includes UC in the Cloud solutions and remote infrastructure-management (Live Virtual Help Desk) services - a platform that is particularly designed for aggregating, merchandising and delivering cloud-related services to system integrators, autonomous software dealers, and IT service providers from all over the world.

According to International Data Corporation (IDC), spending on public cloud services and infrastructure will reach $277 billion by 2021.

We believe the company's expertise in understanding market dynamics and strong product portfolio will continue to aid growth.

Arrow Electronics, Inc. Revenue (TTM)

Arrow Electronics, Inc. Revenue (TTM) | Arrow Electronics, Inc. Quote

Zacks Rank & Stocks to Consider

Arrow currently carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the broader Computer and Technology sector are Vishay Intertechnology, Inc. VSH and Radware Ltd. RDWR , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Long-term earnings growth for Vishay and Radware are pegged at 9.2% and 19%, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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